Gazit-Globe Acquires 5.5% of Atrium Shares From CPI for EUR 87.8M

Gazit-Globe

, one of the world's leading multi-national real estate companies focused on acquisition, development and redevelopment of supermarket-anchored shopping centers in major urban markets, announced today that it has entered into an agreement to purchase 20,416,463 of Atrium (ATR) ordinary shares representing approximately 5.5% of its issued and outstanding shares from an entity forming part of the consortium managed by CPI CEE Management LLC ("CPI"), at a price of EUR 4.3 per share for a total consideration of approximately EUR 87.8 million in an off-market transaction. Following the completion of the acquisition, Gazit-Globe will hold (through wholly-owned subsidiaries) 149,325,178 ATR ordinary shares comprising 39.9% of the issued and outstanding shares of ATR (prior to the acquisition, Gazit-Globe held 34.4% of ATR shares) Following the completion of the acquisition, Gazit-Globe is expected to incur an accounting gain in its third quarter 2013 financial statements, estimated to be between NIS 155 million to NIS 175 million, calculated in accordance with ATR's financial statements as of June 30, 2013 and the exchange rate of that date. The expected accounting gain is subject to adjustments and will be determined by means of an external calculation of the Purchase Price Allocation. Upon completion of the acquisition, CPI will hold 52,069,621 ordinary shares of ATR, comprising 13.9% of the issued and outstanding shares of ATR. Gazit-Globe and CPI will continue to jointly control ATR with 53.8% of its voting rights. Roni Soffer, President of Gazit-Globe: "We are pleased to be increasing our strategic stake in Atrium in light of its excellent management and business prospects. Atrium, which is active in Central and Eastern Europe with a primary focus on Poland, has become over the last few years one of the strongest and most stable real estate companies in the region ."